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Productivity differences in the airline industry: partial deregulation versus short-run protection

Author

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  • Marin, Pedro L.

Abstract

The paper specifies and estimates a production function for the airline industry, identifying firms' network characteristics and efficiency as the main determinants of their productivity. The application of this analysis to the European market shows that productivity differences among flag carriers could explain the governments' different views about deregulation at the beginning of the eighties. The introduction of liberal bilateral agreements by some European government has given their flag carriers incentives to start adjusting their structure in anticipation of future liberalization in the European market while other European flag carriers have delayed this adjustment.

Suggested Citation

  • Marin, Pedro L., 1995. "Productivity differences in the airline industry: partial deregulation versus short-run protection," LSE Research Online Documents on Economics 6775, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:6775
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    File URL: http://eprints.lse.ac.uk/6775/
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    More about this item

    Keywords

    Productivity; network characteristics; efficiency; airlines deregulation;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L59 - Industrial Organization - - Regulation and Industrial Policy - - - Other
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production

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